Ford Motor Company (F)’s Rough Ride in Europe Continues

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The upshot: Grim news will continue, but Ford’s on the case
There’s no way around it: 2013 is going to be ugly for Ford in Europe. Analysts expect overall European auto sales to fall again in 2013, and with Ford committed to restraint in the price wars that have caught up rivals like VW and Fiat, further sales declines seem all but inevitable.

Ford is taking a longer-term view, though. Avoiding steep discounts preserves the company’s margins and pricing power – as well as residual values of Ford’s cars as they age. While reducing production capacity to sustainable levels and expanding the regional product line will take some time to complete, the company’s commitment to decisive action should be reassuring for shareholders – even as the losses continue for several more quarters.

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The article Ford’s Rough Ride in Europe Continues originally appeared on Fool.com.

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